CFAP Assistance CFAP provides direct assistance to agricultural - - PowerPoint PPT Presentation

CFAP 4

CFAP Assistance

CFAP provides direct assistance to agricultural producers impacted by the effects of the COVID-19 outbreak.

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CFAP Funding

Two Funding Sources:

• CARES Act provides
• $ 9.5 Billion
• CCC Charter Act provides
• $ 6.5 billion

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Sign-up Period

Sign-up period for CFAP May 26, 2020 – August 28, 2020

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Sign-up Period

Information available at: www.farmers.gov/CFAP

• r

CFAP Call Center 877-508-8364

To be eligible for a CFAP payment, a producer must have had a share in the eligible commodity

• n January 15, 2020; and/or April 16th through May

14th, 2020. In addition the producer must be a:

• Citizen or National of the United States
• Resident alien (possessing a Resident Alien Card (I-551)
• Partnership of citizens or nationals of the United States
• Corporation, Limited Liability Company, or other organizational

structure organized under State law

• Foreign Person or Foreign Entity who meets Foreign Person Rules

according to 5-PL

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Eligible Producers

Eligible Producers

Payment Limitation

Payment Factor

The initial CFAP payment will be factored at 80% of the calculated payment and will be applied after applying payment limitation. The maximum amount a person or legal entity may receive is $200,000. For Corporations, LLC’s and LP’s qualifying for the

• ptional increase in limitation may receive a maximum of $400,000
• r $600,000 respectively.

Subsequent payments maybe issued at a later date as determined by Secretary. Payments are not subject to sequestration.

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Payment Limitation

Payment Attribution

• CFAP payments to persons and legal entities will

be limited according to the rules for attribution at 7-CFR §1400.105.

• CFAP payments made directly or indirectly to a

person or legal entity will be combined and limited to the per person or legal entity.

• CFAP payments to a legal entity will be tracked

through 4 levels of ownership and will be reduced for members, partners or stockholders holding an ownership interest below the 4th level.

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Payment Limitation

General Information

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Who is Eligible?

Producers:

• with ownership risk of identified commodities

that suffered a 5% or greater national price loss as a result of the COVID-19 Pandemic or had substantial marketing costs of inventories

• Who produce or own one of the following

commodities:

• Milk
• Non-Specialty Crops
• Wool
• Livestock
• Specialty Crops

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New Term: Subject to Price Risk

Any production, sales, and/or inventory that is not subject to an agreed-upon price in the future through:

• Forward contract
• Agreement
• Similar binding document

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AD-3114 CFAP Application

• One application per producer
• Producer Certification
• Documentation is only required upon spot check or when

requested by COC. Retain records for 3 years.

• Completed AD-3114 can be submitted to any

USDA Service Center

Dairy (Production)

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Eligible Dairy Operation

Dairy operations who produce milk for the following months are eligible for CFAP:

• January 2020
• February 2020
• March 2020

Note: Dairy operations that dissolve during the months

• f January, February, and March 2020 are eligible

for pounds of milk production during any month they produced milk.

Eligible Milk Production

CFAP Eligible Milk Production is:

§ Milk produced for the months of January, February, and March of 2020 § Any dumped milk during the months of January, February, and March § Dairy production covered under the Dairy Margin Coverage (DMC) program, Dairy Revenue Protection (Dairy RP), and other dairy revenue insurance maintains eligibility for CFAP.

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Information Used for Certification

CFAP

Producers will use the following information to self- certify January, February and March 2020 milk production:

• Milk marketing statements for the months of January, February,

and March

• Records of dumped milk not listed on the marketing statements

for the months of January, February and March ***REMINDER - Documents are not required to be provided at signup because the application is self-certification. Must retain records for 3 years. ***

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Joint Venture Dairy Operation

CFAP

• Members of dairy operations operating as

a joint venture without a tax identification number (TIN) will separately apply for CFAP.

• Producers will apply using their applicable

pounds of monthly milk production per producer depending on their share of the dairy operation.

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CFAP Dairy Payment Calculation

CFAP

CFAP payments for eligible milk production will be the sum of results of the following two calculations:

• Part 1 (CARES Act) – January, February, and March

2020 milk production total in pounds multiplied by $0.0471

• Part 2 (CCC) – January, February, and March 2020

milk production total in pounds multiplied by 1.014, and by $0.0147

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Non-Specialty Crops & Wool

What are the Eligible Commodities?

Eligible Commodities

• Malting Barley
• Canola
• Corn
• Upland Cotton
• Millet
• Oats
• Sorghum

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Eligible Commodities (continued)

• Soybeans
• Sunflowers
• Durum Wheat
• Hard Red Spring Wheat
• Wool

Note: Crops intended for grazing are ineligible for CFAP

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How were Eligible Commodities Determined?

Determining Commodities

5% decline in futures prices between weeks of:

• January 13-17, 2020, and
• April 6-9, 2020

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What does the Producer Have to Furnish?

Producer Input (continued)

• Producer’s share of 2019 Total Production
• Producer’s share of 2019 Production Not Sold

as of January 15, 2020 – must be subject to Price Risk

• Unpriced inventory (or production subject to

price risk) means any production that is not subject to an agreed-upon price in the future through a forward contract, agreement, or similar binding document.

• Production appraised from failed acres is

ineligible for CFAP.

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Non-Specialty Crops & Wool Payments

Commodity Unit of Measure CARES Act Payment Rate CCC Payment Rate Malting Barley BU $0.34 $0.37 Canola LB $0.01 $0.01 Corn BU $0.32 $0.35 Upland Cotton LB $0.09 $0.10 Millet BU $0.31 $0.34 Oats BU $0.15 $0.17

Payment Rates

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Commodity Unit of Measure CARES Act Payment Rate CCC Payment Rate Sorghum BU $0.30 $0.32 Soybeans BU $0.45 $0.50 Sunflowers LB $0.02 $0.02 Durum Wheat BU $0.19 $0.20 HRS Wheat BU $0.18 $0.20 Wool (graded, clean basis) LB $0.71 $0.78 Wool (non-graded, greasy basis) LB $0.36 $0.39

CFAP

Payment Rates (Continued)

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CARES Act Payment Formula:

“2019 Total Production Not Sold (as of January 15, 2020)” (not to exceed 50% of “2019 Total Production”) 50% of above number multiplied by CARES Act rate.

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Payment Formula

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CCC Charter Act Payment Formula:

“2019 Total Production Not Sold (as of January 15, 2020)” (not to exceed 50% of “2019 Total Production”) 50% of above number multiplied by CCC rate.

CFAP

Payment Formula

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Total Payment

Sum of CARES Act and CCC Charter Act payment

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Payment Formula

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13. Commodity 14. Unit of Measure 15. 2019 Total Production 16. 2019 Production Not Sold (as of Jan 15, 2020) Soybeans Bushel 6500.00 1500.00

CFAP

Payment Example AD-3114 – Part D

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Element Instruction Data

2019 Production Not Sold (as of Jan 15, 2020) Taken from Item 16 – AD- 3114 1,500.00 bushels 2019 Total Production multiplied by 50% Taken from Item 15 – AD- 3114 3,250.00 bushels Eligible Production Smaller of 1,500.00 or 3,250.00 1,500.00 bushels CARE Act Payment (50% multiplied by 1,500.00) multiplied by CARE Act Payment Rate (750.00 multiplied by $0.45) $337.50 CCC Funds Payment (50% multiplied by 1,500.00) multiplied by CCC Payment Rate (750.00 multiplied by $0.50) $375.00 Gross CFAP Payment for Non-specialty/Wool $712.50

CFAP

Payment Example (continued)

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Livestock

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Eligible Producer

[7 CFR 9.3] defines an eligible producer as a person or legal entity who shares in the risk of producing a crop or livestock and who is entitled to a share in the crop or livestock available for marketing or would have shared had the crop or livestock been produced and marketed.

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Eligible Producer

[7 CFR 9.3] A contract grower who does not

• wn the livestock, will be considered a

producer if the contract allows the grower to have risk in the livestock. Livestock owners and contract growers who are at risk and have a share of the livestock available for marketing or would have a share had the livestock been marketed are eligible livestock producers.

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CFAP Eligibility for Livestock

• Livestock that realized a 5-percent-or-

greater national market price decline between the average for the week of January 13-17, 2020 relative to the average for the week of April 6-10, 2020, have been determined eligible for CFAP.

• National payment rates have been

determined based on those price declines.

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Eligible Livestock

Livestock Category Eligible Livestock Cattle

• Feeder Cattle: Less Than 600 Pounds
• Feeder Cattle: 600 Pounds or More
• Slaughter Cattle: Fed Cattle
• Slaughter Cattle: Mature Cattle
• All Other Cattle

Hogs and Pigs

• Pigs: Less Than 120 Pounds
• Hogs: 120 Pounds or More

Lambs and Yearlings

• All Sheep Less Than 2 Years Old

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Definitions

• Feeder cattle less than 600 pounds means

cattle weighing less than 600 pounds.

• Feeder cattle 600 pounds or more means

cattle weighing more than 600 pounds but less than slaughter cattle-fed cattle as defined.

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Definitions

• Slaughter cattle—fed cattle means cattle with

an average weight in excess of 1,400 pounds which yield average carcass weights in excess

• f 800 pounds and are intended for slaughter.

NOTE: This definition in {7 CFR 9.2] was established based on NASS cattle slaughter data. The "1400 pounds" referenced in the definition used an average weight of 1200 to 1600 pound slaughter weight. The livestock category "Slaughter Cattle: Fed Cattle is to provide assistance to eligible livestock producers who have sales and/or inventory of "finished" cattle weighing 1200 to 1600 pounds, reaching an optimal combination of weight, muscle, and fat and ready for slaughter.

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Definitions

• Slaughter cattle—mature cattle means

culled cattle raised or maintained for breeding purposes, but which were removed from inventory and are intended for slaughter.

• All other cattle mean commercially raised or

maintained bovine animals not meeting the definition of another category of cattle in this rule excluding beefalo, bison, and animals used for dairy production or intended for dairy production.

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Definitions

• Pigs means any swine weighing less than

120 pounds.

• Hogs means any swine 120 pounds or more.
• Lambs and yearlings mean all sheep less

than 2 years old.

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General Livestock Eligibility

Eligible Livestock:

• Livestock owned on Jan. 15 and sold between Jan.

15 and April 15, 2020

• Offspring born from that Jan. 15 inventory
• Livestock inventory owned between April 16 and May

14, 2020

• Livestock that are no longer used for dairy production

and have entered the beef cattle market

NOTE: All sales and inventory of livestock must be subject to price risk as of January 15, 2020.

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Ineligible Livestock

Ineligible Livestock:

• Livestock used for dairy production or intended for

dairy production

• Livestock purchased after Jan. 15, 2020 and sold on
• r before April 15, 2020
• Livestock subject to an agreed upon price in the

future through a forward contract, agreement, or similar binding document as of Jan. 15, 2020

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Dairy Cattle Eligibility for CFAP

• Dairy cattle that are no longer used for dairy

production and have entered the beef cattle market are eligible for CFAP, for example:

• Dairy cull cows – “Slaughter Cattle – Mature Cattle”
• Dairy calves – Feeder Calves < > 600 pounds
• Dairy cattle used for dairy production or

intended for dairy production are not eligible for CFAP-Livestock, however milk production from this livestock is eligible for CFAP-Dairy.

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Producer Reporting Requirements The information required from producers to participate in CFAP will be a self-certification by the producer

• r authorized representative. Records

must be maintained for 3 years.

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Producer Reporting Requirements

The following sales and inventory information is required from livestock producers, as applicable:

• Owned inventory of eligible livestock as of Jan. 15 and

any offspring from that inventory, that were subject to price risk and sold between Jan. 15 and April 15, 2020

• Highest owned inventory of eligible livestock that were

subject to price risk between April 16 and May 14, 2020

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Livestock Payment Calculation

CFAP payment for eligible livestock will be the sum of the results of the following two calculations:

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Livestock Payment Rates

Livestock Eligible Livestock Unit of Measure CARES Act Part 1 Payment Rate CCC Part 2 Payment Rate Cattle Feeder Cattle: Less Than 600 Pounds Head $102 $33 Feeder Cattle: 600 Pounds or More Head $139 $33 Slaughter Cattle: Fed Cattle Head $214 $33 Slaughter Cattle: Mature Cattle Head $ 92 $33 All Other Cattle Head $102 $33 Hogs & Pigs Pigs: Less Than 120 Pounds Head $ 28 $17 Hogs: 120 Pounds or More Head $ 18 $17 Lambs & Yearlings All Sheep Less Than 2 Years Old Head $ 33 $ 7

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CFAP Application Example

If all eligibility requirements are met, the estimated gross CFAP payment calculation, before reductions, would be the following:

Eligibility Forms

***IMPORTANT***

• All producer eligibility forms related to CFAP

MUST be filed within 60-days from the date of signing the CFAP application.

• Failure to timely provide all eligibility forms will

result in no payment or a reduced payment.

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Sign-up Period

Information available at: www.farmers.gov/CFAP

• r

CFAP Call Center 877-508-8364